International-Business-Dr-R-Chandran-E-book

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International Business- Dr. R. Chandran
Section 2 of FEMA, 1999 defines the term resident in India as a
person residing in India for more than 182 days during the course of a
financial year.
Persons residing outside India:
Section 2 of FEMA, 1999 defines person residing outside India as a
person who is not resident in India (NRI).
Non-resident Indians generally fall under one of the following broad
categories:
• Non-Resident Indian (NRI)
• An NRI is a person holding an Indian passport:
o Who has gone abroad for a gainful employment or
business or vacation, or for any other purpose
indicating an indefinite period of stay outside India.
o Who are working abroad on foreign assignments-
persons employed by IMF/IBRD/UNO/UNESCO etc.
or who are employed in Central/State Government
and Public Sector Undertakings and deputed abroad
on temporary period.
• Persons of Indian Origin (PIO)
o For the purpose of being eligible for the facilities of
opening and maintenance of various types of bank
accounts and making investments in shares and
securities in India, a PIO means a citizen of any
country other than Bangladesh or Pakistan, if:
• He held an Indian passport at any point of time, or
• Whose parent/s or grand parent/s was citizen of India
(undivided India), or
• Spouse of a non-resident Indian.
Overseas Corporate Bodies (OCBs)
Overseas firms, trusts or companies, predominantly owned by nonresident
Indians are called Overseas Corporate Bodies. The level of
ownership of NRIs in such bodies should be minimum 60%, by one or
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